The Loan Process

The first step in obtaining a loan is to determine how much money you can borrow. You can "pre-qualify" by answering a few questions based on standard lender guidelines to calculate your buying power.

If you want to pursue pre-approval, your lender will need verification of your income, credit, assets and liabilities. Pre-approval gives you a stronger position when making an offer on a home.

Loan-To-Value & Debt Ratios

The Loan-To-Value (LTV) ratio represents the maximum amount a lender will loan against the property. Lenders typically require that your monthly mortgage payment not exceed 1/3 of your gross monthly income. Higher debt obligations may necessitate a larger down payment.

Credit Scores

FICO scores measure your creditworthiness using factors including payment history, amounts you owe, length of credit history, and recent credit inquiries. Multiple lender inquiries within a short period can negatively impact your score.

Self-Employment

Self-employed applicants face stricter requirements. Since pay stubs aren't available, lenders typically require 2 years of tax returns for income documentation.

Down Payment Source

Lenders expect saved funds for your down payment. If unavailable, borrowers may use gift funds from acceptable donors with signed documentation stating repayment isn't required.

There are two primary mortgage types to choose from:

Once you have determined how much you can borrow and selected the right loan program, the next step is to submit your loan application. You can apply through our online system to get started quickly.

Once you have submitted your loan application, your loan processor will verify all the information you have provided. Approval is based on two factors: your ability and willingness to repay the loan and the value of the property.

The processor will evaluate:

Tips for a smooth process:

• Complete your application thoroughly
• Respond promptly to documentation requests
• Avoid unexplained fund transfers between accounts
• Postpone major purchases until after closing
• Remain available for your closing date

After your loan is approved, you are ready to sign the final loan documents. At the closing table, you will sign the necessary documents before a notary. Be sure to review all terms for accuracy and completeness.

You will need to provide a cashier's check or bank wire for any closing costs or fees due at settlement. The first regular mortgage payment is usually due 6-8 weeks from closing.

Federal law permits a 3-day review period for owner-occupied refinances. During this period, you can review the documents before the closing is finalized.